Mahindra Mahindra set to announce Q3 earnings; analysts see flat performance

Mahindra Mahindra set to announce Q3 earnings; analysts see flat performance

Homegrown auto major Mahindra Mahindra M&M is set to announce its earnings for the period ended March 31, 2023, effective March 31, 2023. On yearly comparison, the company is likely to show a strong performance, while the sequential performance is seen muted by the analysts tracking the stock.

Brokerage firms expect M&M to report a flattish performance in revenue and EBITDA on a quarter-on-quarter QoQ basis after the festive season, while year-on-year YoY numbers are seen as good. Even after expansion of margin by automotive division by around 200 basis points bps, M&M will report a revenue of Rs. 21915. The stock was up 28 per cent at 2 crore, rising 28 per cent YoY but flat on QoQ basis. EBITDA is seen at Rs. 2,925. 2 crore, up 50 per cent from the previous year and 4 per cnet QoQ, with an EBITDA margin of 13.3 per cent, expanding 200 bps YoY. PAT is Rs 1,635. 6 crore, up 40 per cent YoY but down 19 per cent QoQ.

The brokerage expects its coverage companies to report revenue growth in Q4 to Q3 E, driven by healthy growth across sectors. We expect robust revenue growth of 32 per cent in M&M's auto industry, he said. We expect margins to expand for CV companies by 200 bps sequentially on higher volumes, price hikes, stable commodities and narrowing discounts, the report added, adding that there is a potential for CV companies to grow by 200 bps.

Antique Stock Broking reveals M&M's revenue at Rs.21,351 in the 2016-17 quarter. 7 acres, rising 24.7 per cent YoY but with EBITDA of Rs 2754 at Rs 7.254 a share. 4 billion, up 41.6 percent, on the same period a year ago. Rs. 2445. net profit amounted to Rs. 32,445. The company rose 33 per cent to 6 crore from a year earlier, up from a year ago. The brokerage expects revenue and EBITDA to fall 2 per cent QoQ, but profit increased 4 per cent on a sequential basis.

Mahindra Mahindra's shares surged more than a percent to Rs. 1,292. At the same time, the market was worth more than 1.6 lakh crore rupees, with the market worth more than 70 billion rupees. Even after the steep drop from its 52-week high, the blue-chip stock is up 7 percent in the past month, while it's gained about 40 percent in the past year.

Sharekhan expects M&M to report revenue of Rs 21.881 in the first quarter of this year. 7 crore, up 27.8 per cent on the year-on-year basis, but flat on a sequential basis. The EBITDA margin is expected to be 12.7 percent, rising 131 bps YoY but may contract 32 bps QoQ. Rs. 1,291 profit seen in the year-earlier period. 9 crore, up 22.5 per cent YoY and 3.6 per cent QoQ.

M&M's automotive division is forecast to register 10 bps QoQ expansion in EBIT margin. With a high base, leading tractor players M&M have reported 15.2 percent decrease in volumes sequentially. He added that M&M will see a 30-bps QoQ contraction in EBIT margin.

ICICI Securities has revenue of Rs. 22177. 2 crore rose 30 per cent YoY but flat sequentially, with a net profit of Rs. 306.65 to Rs. 306.85, up from Rs. 306.85 in the same period last year. 5 crore, increasing 58 per cent YoY but just 9 per cent QoQ. PAT is seen at a range of 2,059. 6 Crore, up 59 percent YoY and 35 percent QoQ. It has a 'buy' rating and a target price of Rs 1,386.